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For Immediate Release
June 12, 2009
Contact: Sally Kohr
(717) 787-4651

Alloway Supports Passage of Legislation to Protect Realtors and Consumers 

HARRISBURG – The Senate approved legislation Wednesday cosponsored by Senator Richard Alloway II (R-33) that would protect realtors and consumers involved in failed real estate transactions. 

Under current law, disbursement of money held in escrow for down payments or deposits for a real estate transaction can require legal action that can take months or even years to settle if the transaction does not occur. Senate Bill 241 would allow realtors to release funds held in escrow back to consumers if a transaction is not completed. The bill would allow realtors and consumers to make a written agreement on the conditions and timing for funds to be released following a failed transaction. 

"The current process for releasing these escrow funds can cause needless frustration for consumers and realtors and require a great deal of time and money to resolve," Alloway said. "This legislation would help all parties involved in a failed transaction resolve the situation quickly and efficiently."   

Senate Bill 241 would also allow real estate salespersons and associated brokers to form qualified associations. 

Senate Bill 241 will now be sent to the House of Representatives for consideration.